Do Your Research

Before entering into any real estate transaction, do your research on the property, the seller, and the real estate agent involved. Look up the property records, do a background check on the seller, and verify the credentials of the real estate agent. Don’t be afraid to ask for references and check them out before proceeding.

Never Wire Money

Never wire money to someone you don’t know or trust. Scammers will often ask for payment via wire transfer, as it is quick and difficult to trace. Instead, use a reputable payment method, such as a cashier’s check or escrow service, to protect yourself from fraud.

Be Wary of Unsolicited Offers

If you receive an unsolicited offer on a property, be wary. Scammers will often use high-pressure tactics to get you to agree to a deal quickly, without giving you time to do your research or consult with a real estate professional. If an offer seems too good to be true, it probably is.

Hire a Reputable Real Estate Agent

A reputable real estate agent can help you navigate the complex world of real estate transactions and provide valuable insights and advice. Look for an agent who has a proven track record and is well-respected in the industry. Avoid agents who pressure you to make quick decisions or who are not transparent about their fees and commissions.

Get Everything in Writing

Make sure that all terms of the real estate transaction are in writing, including the purchase price, any contingencies, and the timeline for the transaction. This will protect you from misunderstandings or disputes later on. Review all documents carefully and don’t sign anything until you fully understand the terms.

Trust Your Gut

Finally, trust your gut. If something feels off or too good to be true, it probably is. Don’t ignore your instincts, even if you can’t put your finger on why something doesn’t feel right. Take your time, do your research, and don’t be afraid to walk away if something doesn’t feel right.

In conclusion, real estate transactions can be complex and involve a lot of money, making them a target for scammers and fraudsters. By doing your research, working with reputable professionals, and trusting your instincts, you can protect yourself from becoming a victim of real estate fraud. Stay vigilant and be cautious, and you’ll be able to navigate the real estate market with confidence.

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Most of the new graduates who started work in their early 20’s primarily focused on getting more experience rather than getting a promotion, a raise or both. The same can be said for me at that time. It was all work, work, work for me and then spending the money for myself because I felt that I deserved it! Eventually, it took 7 years for me to realize that having a job is not the ultimate source of income.

The Book that Lured Me to Invest

Enter the book: Rich Dad Poor Dad. To this day, I still consider it to be the most valuable book I have ever bought and read about investing. I was so amazed by the first book that I collected its series as they were very easy to understand, and they get right to the heart of the matter. Although the setting is US-based, some of the knowledge or perceptions about money and investing are still adaptable regardless of location. Its author, Robert Kiyosaki, has passionately expressed his beliefs in real estate and how investing in it became his greatest source of passive income.

What is Passive Income?

Passive income is any money earned in a manner that does not require much effort. It means, receiving extra income for something that does not require your full attention while doing other things – like earning while you’re sleeping. I realized however, that money begets money, no matter how small the amount is. This realization made me review my financials and find the answers to my biggest WHYs before truly jumping into the real estate investment bandwagon.

My First and Biggest Expense a.k.a. My Property

Working in the Philippines requires monthly contributions to the various government institutions like Pag-ibig, SSS, PhilHealth, etc. Pag-ibig is the Philippine government’s housing agency and as a regular member, a loan under Pag-ibig helped me to acquire a property. It didn’t take long for me to look for that perfect house and lot. I have also read that a strategic location is the key to finding the right real estate and that it should be accessible to one’s frequented locations for easier management. I have acquired my very first townhouse in Jan 2010 in Cavite via a Pag-ibig loan and never looked back.

Was it Worth-It?

Short answer, yes! Why? My property has more than doubled its market value to date, and still allows me to earn passive income from a long-term tenant. These extra earnings help greatly in offsetting some of my family’s monthly expenses which paved the way for more savings and investments. Good thing I grabbed the opportunity to purchase the property before the surrounding area was filled with popular shopping malls! If I were to purchase a property there now, I would say it won’t be as cheap as before and the choices will be limited due to the current space in that vicinity. Start looking in areas that are still being developed and make a plan to kick-start your property investment. It’s never too late to start.

An Exhilarating Experience

Buying real estate for the first time was one of the riskiest and scariest decisions I have ever made, but THE BEST experience, nevertheless. It has taught me the value of money and being responsible for it in the process. I have also learned that doing things out of my comfort zone has its own rewards. Being able to constantly apply this learning truly helped me with my personal growth, self-esteem and independence. Would I do it again? With detailed study and planning, yes of course!

The post Loving Passive Income appeared first on Cheap and Functional.

So you wanted to use your home as one of your income sources while you are away, but you don’t know where to start? Here are a few steps to help you turn your home into a rental property.

Know Your Numbers and The Law

Before you consider using your home for rent, know your numbers. How much will you charge for rent? Consider your investment in your property. Take note of your mortgage repayment, utilities, maintenance and repairs. That can be your basis on how much you will charge for rent.

Is your property with or without furniture? Most tenants would prefer a fully furnished home so consider this expense as well to factor in your rent charge.

While it will be a year since the country has been in quarantine, you may also take into consideration the financial status of your potential tenants.

Read on the Rent Control Act when preparing your terms on charging the rent and how you would charge your tenant.

Identify Your Target Market

Next is consider your target market. Where are you located?

Is your property located in the suburban area or within the central business district? Is your area near a school, public facilities, office or other properties? Are you surrounded with residential high-rise buildings, condominiums, business offices or apartments?

Who will be your prospective client? Is it a family? Expat? Or expats with family? How old is your target market? Is it the corporate CEO or an associate? How much is their salary range?

Look At Any Necessary Improvements In Your Property

 So you have identified your target market, and you saw that your location may be favorable to a premium tenant. To ensure you get your ideal client, maybe have an updated theme suitable for high-end clients: maybe a minimalist or industrialist look would be a good upgrade in your property.

You may also consider turning your property to a renewable, efficient and sustainable unit. It may be expensive at first, but the benefits outweigh the costs.

Get Social 

Now that you have considered your charges, your target market and your possible upgrade, consider where will you post your property and how will you even reach your target market. Time to get social!

Social media plays a major role these days to reach potential clients even with properties. As of January 2021, the Philippines stay on top spending their time being on social media for 4 hours and 15 minutes and with the pandemic, more and more people are using social media to connect.

You may also need to polish on online marketing skills when it comes to the look and feel of your social media. Timing and virality of the posts will have an impact on your call to action or sales conversions.

Grow A Community Than Hard Sell Your Property

Reaching to your immediate community is still a big factor when it comes to meeting your prospective market. You may sponsor an event or an activity in your community to build awareness to the public, unless you want it as a private property. If so, word of mouth is still the fastest way to spread the news and there is a higher chance you will get your tenant.

But also remember, you are not just out there to search for your ideal tenant by selling your property, you are also selling the environment that surrounds it. The area where your home is may have a park, a sports complex, a public library, a nearby mall or have a spacious parking lot, and other familiar landmarks. This way, your property will be more favorable than ever.

References:

R.A. No. 9653 or Rent Control Act of 2009. 

PH Remains Top in Social Media, Internet Usage Worldwide. 

6 Marketing Strategies That Will Help You Rent Your Property. 

Q&A: I’m Planning to Put My Property Up for Lease. What Do I Do? 

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